Gold and Crude Oil have been on a tear since the 2009 low. Readers of EWL were most recently updated on my bullish stance towards these markets while some elliotticians had called a top in Gold and Oil.
The wave principle provides the context for determining the markets position and it also gives you an way of determining the probability of a future direction for the market. Today's chart of the day features a the Gold/Oil Ratio.
The significance of this chart gives traders an unfair advantage over other traders by it's ability to forecast the US economy, the USD, Commodities and direction of the equity markets.
Print out this chart and label the corrective wave structure from the high of 27.8... then compare it to my elliott wave count as I revisit the chart of the Gold/Oil Ratio and show readers how it fits into my macro view for Gold, Oil, USD, Commodities and the S&P.
You'll find all that in my special video edition of "Heard On The Street", published on March 6, 2011.
Best of Trading
Very helpful!
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